Hi, Wells approved the short sale. Seller is current on mtg but showed a financial and medical hardship. Its a condo/second home, not primary residence. Had a purchase agreement for the sale and one last stipulation was 10K cash contribution from seller. We countered with $1K contribution from seller and abruptly the offer was declined by Freddie with no explanation except for "unjust hardship" They would not elaborate any further. I am frustrated by the last minute denial. What can be done to save the deal? Should the seller be delinquent? Would that help? Any advise to make this short sale work would be appreciated.
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Thirty one days is 2 months mortgage default.
There is no grace period for a mortgage debt.
My experiences (3) with Freddie as investor this year is that they denied all three of them with an innocuous denial reason code when those borrowers were not in payment default.
Those clients then chose to default, short sale file resubmitted, subsequently approved and all three closed.
Two of those files had low debt ratios (25%-ish) so the payment default seemed more important than the ratios. Only 1 of them had to make a $1,000 contribution.
Hi, how many months did they go delinquent before you resubmitted?
Debt to income is super high, over 100%. Do you think it is because it is a non owner occ and not delinquent that they turned it down?